Trésorier/Treasurer magazine - N°94 - Juil/Août/Sept 2016 - (Page 61)
Solvay BS, ULB
Besides the content of the
incriminations, this is one
Long seen as one of the
more example of the latitude
ultimate sovereign rights
that global law addresses, i.e.
left to the members of the
not only national and interEU, the international tax
national public law focusing
practice is being revamped on territorial jurisdictions, but
through the BEPS proalso regulatory requirements,
programmes of internatiogramme left to the OECD.
nal organisations such as the
OECD, the G20, the BIS, and
the like. Step by step, little by little, they are reshaping the global
legal landscape and are reframing the competitiveness of countries
and their actors. Long seen as one of the ultimate sovereign rights
left to the members of the EU, the international tax practice is
being revamped through the BEPS programme left to the OECD, for
example. Debates tend to go around the way these "frameworks"
will be implemented, about their parameterization somehow. But
the truth is, they don't stem necessarily from the same doctrine and
philosophy underlying our own legal framework, just as civil law
systems differ from common law systems.
Now, beyond the debate on their well-groundedness, we risk
facing overlaps, contradictions and thus exposures. For example,
the British Standard Institute has issued the standard BS 10500,
Standards Australia (SA) has its own AS 8001-2008 and we can also
now claim allegiance to ISO 37001. And this is just for anti-corruption frameworks. Should you be compliant to all of them? Well, a
zero-risk policy should imply "yes". But because of inconsistencies, this might prove difficult. Thus, probably identify the stricter
one or the one with the widest reach and claim that at least this
shows sufficient conformism.
Compliance, the definition
Compliance...fact of complying. Not very deep. Comply...adhere to
standards, rules, requirements. Adherence...Looks like you had the
choice. Conforming. Sounds like a duty. In a rule-based system,
conformity to rules can lead to conformism, in the bad sense of the
word. Just do what is requested. Don't dare thinking any further.
Many frameworks are today more principle-oriented. Even if you
obey to the rule, knowing that conformity was not precluding the
issue from arriving can make you still guilty by omission. This leads
to an interesting paradox. Insider trading is using confidential information you should not even know, possess, or use for your own
benefit1 . But today, we see more and more financial cases brought
by investors to the courts for not reacting to "new" information.
The good, the bad, and the ugly...
On the good side, compliance and the creation of meta institutions above local politics aim at creating a common-level playing
ground and can force sudden evolutions in cases where we would
probably see no change unless a revolution would take place.
The development of those international frameworks can thus be
This brings us to the definition of compliance...lawyers love definitions.
LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE
Recently in May, the second annual Brussels Global Law Week
took place and held its annual conference together with the
Finance Club of Brussels on "Compliance of Risk Management" or
"Risk Management of Compliance"... The panel included among
others Michael Julian, (new) Chief Compliance Officer at Alstom
Transport, a company that had to face a settlement of $772 million
by the end of 2014 for bribery abroad, number two of an FCPA list
between Siemens and Halliburton. Many other firms follow, and by
far not necessarily American. As Prof. Lewkowicz pointed it out,
Siemens hired 300 lawyers, conducted 2'550 interviews, searched 82 million documents, examined 38 million transactions, 10
million bank accounts and it costed a total of internal costs of €550
million on top of the settlement of $800 million.
/ AUG / SEP 2016
1. Important nuances exist from a country to another.
Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°94 - Juil/Août/Sept 2016
Table of contents
FINANCIAL HIGHLIGHTS Luxembourg Tax News
INTERVIEW Philippe Gelis - Kantox - Fintech and the future of banks
Lost in transformation
Everything has a price – a transfer price
Treasury Survey - an unprecedented picture of treasury activities in Luxembourg
The impact of negative rates on Treasury and Risks Management Systems
Towards reporting harmonisation?
Understanding the Treasury impact of BEPS
Impacts of Single Resolution Mechanism and Bail-in for European Banks
Supply chain? Not concerned?
Collateral management and the Corporate Treasury function.
Efficiently Managing Cross-Border Payments in Turbulent Times
How Mid-Market Companies Can Efficiently Manage Enterprise-wide FX Risk as they Grow
Investing surplus cash in repos
A wind of technology changes in the treasury management world
Invoicing can be fun….?
Comment améliorer la performance des fonds de pension européens
15 MINUTES WITH O2Finance
THE FINANCIAL RISK OBSERVATORY
LIFE BEYOND NUMBERS
Trésorier/Treasurer magazine - N°94 - Juil/Août/Sept 2016